Forest Capital Provides A/R Line to Power Systems’ Manufacturer

Forest Capital provided $500,000 in A/R financing to a Florida-based manufacturer of highly engineered power systems, enclosures, trailers and tanks. The economic downturn caused most of the company’s projects to be placed on hold or cancelled.

Due to the ensuing drop in sales and production, the company was faced with a significant operating loss and cash-flow deficiency. In 2011, the company saw a resurgence in projects as government funds became available. Unfortunately, the company’s banks would not provide any additional financing to support the new revenue growth.

The banks agreed to subordinate their first lien position on the accounts receivable, allowing Forest Capital to provide a $500,000 facility.